Federated Partnerships

Federated Department Stores Inc. (Cincinnati) will be testing in-store shops with LensCrafters Inc. (Mason, Ohio) and American Greetings Corp. (Cleveland) across its nationwide chain.

An optical boutique, designed with LensCrafters, has already opened in a Bon-Macy's in Tacoma, Wash., and four more are scheduled over the next four months in a Burdines (Edison Mall, Fort Myers, Fla.) and three Macy's West stores (Scottsdale, Ariz., Fashion Mall; Sacramento, Calif.; and Concord, Calif.). The 1500-square-foot shops will be located adjacent to accessories or apparel departments and, in addition to eyewear product will offer free cleaning and adjustments and an on-site optometrist.

Kiosks in 41 Federated stores will offer American Greetings' upscale Winking Moon Press line.

“Customers tell us they want to buy a wider range of merchandise within their stores, with brands they know and trust,” said Federated vice chairman Tom Cole. “We'll carefully monitor results of these pilots and roll out concepts that are successful. Based on results, we also plan to identify other partners.”

The 460-unit department store organization reported that total sales fell 2.1 percent for the four weeks ended Nov. 1, 2003. Same-store sales for the month were down 2 percent.

For the 13 weeks of Federated's third quarter, the company reported total sales up 0.2 percent and same-store sales up 0.3 percent.

Year-to-date, sales are down 2 percent and same-store sales also down 2 percent.

President and ceo Terry Lundgren noted that October sales were hurt by wildfires and transit strikes in Southern California and warmer-than-normal October temperatures across much of the nation, which offset some of September's sales strength.

“The 0.3 percent increase in same-store sales for the quarter is more indicative of our actual sales trend than either September or October monthly sales,” Lundgren said. He expects the company to exceed the high end of its prior third quarter earnings guidance of 30-33 cents a share.